Non-compliance of ESR may attract some penalties. The penalties are:
• Failure to submit a Notification attracts a penalty of AED 20,000
• Failure to submit a Report attracts a penalty of AED 50,000
• Failure to demonstrate Economic Substance in the UAE attracts a penalty of AED 50,000 for the first time and a fine of AED 400,000 for second consecutive instance.
• Providing incorrect information also attracts penalties
For more information on Economic Substance Regulations, visit Economic Substance Regulations page.